1)Budgeted production is calculated by:
adding budgeted unit sales to budgeted ending work in process inventory, and subtracting budgeted beginning work in process inventory.
adding budgeted unit sales to budgeted ending finished goods inventory, and subtracting budgeted beginning finished goods inventory.
adding budgeted unit sales to budgeted beginning work in process inventory, and subtracting budgeted ending work in process inventory.
adding budgeted unit sales to budgeted beginning finished goods inventory, and subtracting budgeted ending finished goods inventory.
2) The starting point for preparing the master budget is the:
sales budget.
production budget.
budgeted balance sheet.
inventory budget.
3) If a company is planning to build inventory:
sales should exceed production.
production should equal sales.
production should exceed sales.
production should equal inventory.
4) Which of the following is not a component of the cash budget?
Budgeted cash payments.
Budgeted cash collections.
Depreciation expense.
Cash borrowed or repaid.
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